Saunders & Worley v. Hartwell & Chambers

61 Tex. 679, 3 Tex. L. R. 183, 1884 Tex. LEXIS 173
CourtTexas Supreme Court
DecidedJune 3, 1884
DocketCase No. 4835
StatusPublished
Cited by5 cases

This text of 61 Tex. 679 (Saunders & Worley v. Hartwell & Chambers) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saunders & Worley v. Hartwell & Chambers, 61 Tex. 679, 3 Tex. L. R. 183, 1884 Tex. LEXIS 173 (Tex. 1884).

Opinion

Walker, P. J. Com. Apr.—

The following are the conclusions of fact found by the court:

“ 1st. On the 27th day of February, A. D. 1878, the defendant, J. E. Saunders, conveyed the land upon which the mortgage is sought to be foreclosed in this suit to his co-defendant, J. H. Chris-man. The conveyance from Saunders to Chrisman was filed for record in Coryell county, February 28, 1878, and afterwards duly recorded.
“2d. On the 30th day of November, 1878, the defendant, J. H. Chrisman, executed the alleged mortgage to P. N. Harris, which was filed for record in Coryell county on the 23d day of January, 1879, and afterwards duly recorded. This mortgage was executed to secure the notes sued on.
[683]*683“3(1. On the 16th day of December, 1878, Chrisman reconveyed the alleged premises to Saunders, his deed to Saunders being filed for record in Coryell county on the 3d day of January, 1879, and afterwards duly recorded. The sole condition of this transaction was the surrender by Chrisman of three notes hereinafter mentioned.
“ 4th. The consideration in the transaction first above mentioned was in part three promissory notes for $500 each, executed by Chrisman to Saunders, payable to Saunders’ order, dated 27th of February, 1878, and reciting that they were given for three acres of land, situated in Coryell county, Texas, about three hundred yards north of the public square in the town of Gatesville, upon which ‘ the steam mill, etc., is situated;’ said notes expressly retained the vendor’s lien in the usual form, but did not designate the survey out of which the alleged three acres of land were taken. These three notes were acknowledged by Chrisman before L. M. Allen, county clerk of Coryell county, Texas, and by Allen afterwards recorded in the deed records of said county; the acknowledgment being in the usual form of an acknowledgment to a deed.
“ 5th. The deed from Chrisman to Saunders was absolute on its face, reciting a paid consideration.
“ 6th. Harris, when he took the mortgage from Chrisman, had no notice, actual or constructive, of the vendor’s lien retained by Saunders in his sale to Chrisman.
“ 7th. Saunders, when he took the reconveyance from Chrisman, had no notice, actual or constructive, of the mortgage to Harris.
“ 8th. A part of the consideration in the first mentioned sale by Saunders to Chrisman was a certain three hundred acre tract of land which Chrisman conveyed to Saunders, one hundred acres of which, prior to this transaction, was the property of Chrisman’s son. This one hundred acres was incumbered by a mortgage executed by Chrisman’s son to P. H. Harris to secure the payment of a note. Chrisman executed his note to Harris in lieu of the one Harris held against his son, and took from his son a conveyance of the one hundred acres in order to clear the title to the three hundred acres which he afterwards conveyed to Saunders. This note thus executed to Harris is the note sued on in this case, and to secure the payment of which, Chrisman executed the alleged note to Harris.
“ 9th. Of the transaction between Chrisman and his son, by which the note sued on was substituted for the note from Chrisman’s son to Harris, Saunders had no notice, actual or constructive.”

[684]*684Upon which conclusions of fact the court deduced the following conclusions of law, viz.:

“ 1st. Harris having acquired his mortgage lien without notice of the lien retained by Saunders, his rights under the mortgage cannot be affected by such lien.
“ 2d. The reconveyance by Chrisman to Saunders, the consideration of which was the surrender of the former’s notes, cannot in law constitute the latter a purchaser for a valuable consideration, within the meaning of the rule giving protection to innocent purchasers. In such case, the mere want of notice is not sufficient; the purchaser must part with value, not simply surrender an antecedent debt. If Harris, Avhen he took his incumbrance, Avas protected against the tacit lien of Saunders, of Avhieh he had no notice, the reconveyance by Chrisman to Saunders did not, in my judgment, change the status of the parties.
“3d. The notes executed by Chrisman to Saunders were not instruments permitted or required by law to be recorded. The registration of them, therefore, did not in itself gixTe notice of the lien.”

The appellants, Saunders and Worley, assign as error that “the court erred in holding that the deed from J. It. Saunders to J. H. Chrisman to the land in controversy, and three purchase money notes of said J. H. Chrisman to J. E. Saunders and ICinsey, all of which were duly acknowledged for record and recorded together in the office of the clerk of the county court of said Coryell county, prior to the date of the pretended mortgage of J. II. Chrisman to Harris, on Hovember 30, 1878, constituted no notice to said Harris of J. E. Saunders’ superior and prior lien on said land; the court holding that the three notes Avere not such instruments concerning lands and tenements, as, after having been duly acknowledged or proved according to law for record, are authorized by article 4331 of the Eevised Statutes to be recorded.” And that “ the court erred in its conclusion of fact and law, filed among the proceedings as shown in paragraph Ho. 2, in this: that Harris acquired his mortgage Avithout notice of the lien of Saunders, and that his rights under his mortgage could not be affected by lien of Saunders.”

We "will consider the first ground assigned as error. The deed from Saunders to Chrisman, together with the three purchase money notes reserving the vendor’s lien, were recorded on the 28th day of February, 1878; the mortgage of Clirisinan to Harris was executed the 30th of Hovember, 1878; and consequently the question involved under this assignment is not affected by any change which may have been effected by article 4331, Eevised Statutes, said revision [685]*685having boe.i a lopted afterwards, but must be determined under the pre-existing laws governing the subject of registration.

The deed from Saunders to Chrisman being absolute on its face, acknowledging as it did full payment of the consideration which was named' in it, ami which consequently reserved no lien on its face, did not, by its registration, afford any notice whatever of the existence of such lien, if any had in fact existed; and unless the mortgagee, Harris, was otherwise affected with notice than as shown by the deed referred to, evidently the mortgage would not be affected by the vendor’s lien held by Saunders. But the purchase money notes for the land were recorded at the same time with the deed, and this presents the question whether the registry of them, containing recitals showing a reservation of the vendor’s lien on the property conveyed in the deed, are such instruments as may be recorded tinder the law of registration.

The construction to be given to article 4989, Pasch. Dig., will determine whether such notes as these are, evidencing not only a promise to pay money, but also being the evidence of a contract reserving a vendor’s lien upon land, are such instruments of. writing in relation to land as the statute contemplates may be recorded.

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Cite This Page — Counsel Stack

Bluebook (online)
61 Tex. 679, 3 Tex. L. R. 183, 1884 Tex. LEXIS 173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saunders-worley-v-hartwell-chambers-tex-1884.